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Determinants of household expenditures on alcohol

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also e...

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Bibliographic Details
Published in:The Journal of consumer affairs 1996-06, Vol.30 (1), p.48-67
Main Authors: YEN, STEVEN T., JENSEN, HELEN H.
Format: Article
Language:English
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Summary:This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.
ISSN:0022-0078
1745-6606
DOI:10.1111/j.1745-6606.1996.tb00725.x